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Support Networks within the Family As a Public Good Problem

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  • Robert F. Schoeni

Abstract

his paper examines altruism and exchange models of familial relationships. It first examines the predictions of these models when there are more than two family members, demonstrating that altruism with multiple altruists is similar to the classic public good model. The paper also examines predictions of the altruism model under the assumption that the child acts strategically. It is traditionally assumed that parents unilaterally determine the amount of assistance they provide to their child. However, if one allows strategic behavior by the child, the classic prediction of complete neutralization of redistributive policies does not hold. Empirical analyses do not overwhelmingly support either of the two models; other motivations are likely to be important.

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File URL: http://www.rand.org/content/dam/rand/pubs/drafts/2008/DRU2294.pdf
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Bibliographic Info

Paper provided by RAND Corporation Publications Department in its series Working Papers with number 00-06.

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Length: 28 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:ran:wpaper:00-06

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Keywords: ALTRUISM ; FAMILY ; PUBLIC GOODS;

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References

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  1. Donald Cox & Fredric Raines, 1985. "Interfamily Transfers and Income Redistribution," NBER Chapters, in: Horizontal Equity, Uncertainty, and Economic Well-Being, pages 393-426 National Bureau of Economic Research, Inc.
  2. Joseph G. Altonji & Fumio Hayashi & Laurence J. Kotlikoff, 1995. "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," Boston University - Institute for Economic Development 65, Boston University, Institute for Economic Development.
  3. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
  4. Barro, Robert J., 1974. "Are Government Bonds Net Wealth?," Scholarly Articles 3451399, Harvard University Department of Economics.
  5. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
  6. Bernheim, B Douglas & Bagwell, Kyle, 1988. "Is Everything Neutral?," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 308-38, April.
  7. Cox, Donald & Rank, Mark R, 1992. "Inter-vivos Transfers and Intergenerational Exchange," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 305-14, May.
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Citations

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Cited by:
  1. Audrey Light & Kathleen McGarry, 2003. "Why Parents Play Favorites: Explanations for Unequal Bequests," NBER Working Papers 9745, National Bureau of Economic Research, Inc.
  2. Donald Cox, 2003. "Private Transfers within the Family: Mothers, Fathers, Sons and Daughters," Boston College Working Papers in Economics 605, Boston College Department of Economics.
  3. François-Charles Wolff & Mohamed Jellal, 2002. "Aides aux parents âgés et allocation intra-familiale," Revue Économique, Programme National Persée, vol. 53(4), pages 863-885.
  4. Wolff, François-Charles, 2006. "Les transferts ascendants au Bangladesh, une décision familiale?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 271-316, mars-juin.
  5. Jellal, Mohamed & Wolff, Francois-Charles, 2002. "Cultural evolutionary altruism: theory and evidence," European Journal of Political Economy, Elsevier, vol. 18(2), pages 241-262, June.

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